Buying and reselling for PROFITS Thread

Quote from Nick6280 : Good to know. Thank you. We have a 2000+ sq ft 4 bedroom house with one daughter, so we have two spare bedrooms, a basement, and a front living room doing nothing right now.

If one "home business office" deduction is a red flag, I'd guess claiming 2 would be DEFCON 1.

If you are doing everything by the book, then no problems. But I prefer to stay under the radar with those key "flag" deductions.

Quote from BargainSnatcher : Why would there be? What happens to the product after Canon sells it has no impact on Canons finances. Its probably just an authorized seller thing.

Are you a tax lawyer? A professional distributor/reseller? No? Neither am I and neither is the OP, and no one here has any true answers for the OP. It is up to him to do the research to keep his ass out of prison or trouble with the IRS or getting sued by Canon, I am just tossing out possible problems.

Quote from travathian : Are you a tax lawyer? A professional distributor/reseller? No? Neither am I and neither is the OP, and no one here has any true answers for the OP. It is up to him to do the research to keep his ass out of prison or trouble with the IRS or getting sued by Canon, I am just tossing out possible problems.

Actually, i am a professional reseller, and have experience as a exclusive distributor too.

Interesting the assumptions people make.

Quote from canonikon : I understand how Canon might not want to sell it to me because I'm not authorized but what about the retailers that buys their merchandise from Canon? Why are retailers asking me if I am buying it to resell or not? I pay the same price as their other customers also.

You could probably write a book on the reasons. Here are a few that spring to mind....

- They are concerned they may end up on the grey market in european countries
- You are buying from their retail department, not their wholesale dept.
- That inventory may have been allocated to help it get more market share among the budget/value/<$X market and you are taking that inventory and putting it into the regular priced market. Its like the drug companies selling medications dirt cheap to 3rd world countries, and then those companies in the 3rd world countries selling the inventory back to consumers in the drug companies primary market at a profit.
- They would rather 10 people get a bargain on a camera than 1 guy buy 10 cameras and sell them on at full price. Same principle as when lego/walmart/<any retailer> limits quantities on sale items.

Is it legal to sell rocks?
I mean technically they belong to the State and the Federal Government right?

Bartering and trading shouldn't require a license to do so. Licenses are just more taxes the government is trying to take from all of us.

Soon High School Diplomas will require a yearly license fee for you to utilize them.

Quote from Nick6280 : And I believe that for 2013 you can claim a standard "streamlined" home office exemption @ $5 sq ft up to 300 sq feet, or $1500.00. http://articles.washingtonpost.co...e-interest My question is, if my Wife an I each have our own business run out of the same house, can we claim $1500 each?

Make sure you mark this on your return:

[X] Would you like a free audit?

Quote from ViciousTide : Is it legal to sell rocks? I mean technically they belong to the State and the Federal Government right? Bartering and trading shouldn't require a license to do so. Licenses are just more taxes the government is trying to take from all of us. Soon High School Diplomas will require a yearly license fee for you to utilize them.

I don't want to pay taxes for the services I receive

Go live in a boat in international waters or move to Somalia.

Quote from ViciousTide : Is it legal to sell rocks? I mean technically they belong to the State and the Federal Government right? Bartering and trading shouldn't require a license to do so. Licenses are just more taxes the government is trying to take from all of us. Soon High School Diplomas will require a yearly license fee for you to utilize them.

What, on Gods green earth, are you talking about?

Quote from sd444 : Quote from Nick6280 : And I believe that for 2013 you can claim a standard "streamlined" home office exemption @ $5 sq ft up to 300 sq feet, or $1500.00. http://articles.washingtonpost.co...e-interest My question is, if my Wife an I each have our own business run out of the same house, can we claim $1500 each? Make sure you mark this on your return: [X] Would you like a free audit?

I thought it was a legitimate question?

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Quote from Nick6280 : I thought it was a legitimate question? Sent from Slickdeals App for iPhone & iPod Touch.

He is just saying that would throw up a red flag as it looks like you are trying to take the same deduction twice.

Are you both using the same space?

Shortly thereafter, Marc and Vinit purchased the domain name and telephone number for 1800DIAPERS. They worked nights and weekends and enlisted a friend with her own family to answer customer calls and fulfill orders from her suburban garage. But there was one huge obstacle: most major manufacturers wouldn't sell their products to a start-up. So using their personal credit cards, they rented trucks and headed to BJ's and Costco stores up and down the Eastern Seaboard to buy diapers, wipes and formula in bulk.

Quote from WildChickenDanc : Shortly thereafter, Marc and Vinit purchased the domain name and telephone number for 1800DIAPERS. They worked nights and weekends and enlisted a friend with her own family to answer customer calls and fulfill orders from her suburban garage. But there was one huge obstacle: most major manufacturers wouldn't sell their products to a start-up. So using their personal credit cards, they rented trucks and headed to BJ's and Costco stores up and down the Eastern Seaboard to buy diapers, wipes and formula in bulk.

And they used a resale certificate. This has nothing to do with the OP who is skipping paying taxes completely for "PROFITS."

Quote from sd444 : And they used a resale certificate. This has nothing to do with the OP who is skipping paying taxes completely for "PROFITS."

Why wasn't i driving around buying diapers in 2006...True about the resale cert and True that this is totally unrelated to anything other than they made mad bank off reselling.

Quote from BargainSnatcher : Quote from Nick6280 : I thought it was a legitimate question? Sent from Slickdeals App for iPhone & iPod Touch. He is just saying that would throw up a red flag as it looks like you are trying to take the same deduction twice. Are you both using the same space?

No, I would keep them separate. Neither of us have started anything, but are considering it.

While I have the floor, does anyone here sell items in a group buy style... ie lets say 25 local people agree to buy x number of the same item which would normally cost a considerable amount to ship in small amounts, but would be less (to the individual) if purchased in bulk and shipped to one person. Once the order arrives the coordinator (ie Me) would arrange the individual sales (I would be a legit business with vendor license and collecting sales tax) while making a profit. I know Groupon, etc exists, but this would be way smaller and the group buys would be initiated on a web forum. I probably should start a new thread for this...

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